On the surface, it appears that most enterprises today are taking full advantage ofboth shared services and outsourcing – last year, our State of Outsourcing study with the Outsourcing Unit at the London School of Economic revealed that 97% of large organizations greater than $1B in revenues outsource to a degree, and 90% have a shared service capability in place. However, HfS research’s latest survey data emphatically demonstrates that only a modest fraction of business process has actually been shifted to either the shared service center or the outsourcing partner. In most cases, over two-thirds of transactional process work is still, bewilderingly, sitting in the business units, despite the proven business benefits of centralizing processes.
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